Solve the Cases

Case 1 (Group 1)
Coca-Cola is the most ubiquitous brand in history. Each day, people in 200
countries around the world drink some 1.2 billion 8-ounce servings of the cola.
Marketing for the twenty-first century means leveraging the longtime
marketing principles that work, while inventing new ways to stay relevant.
Coca-Cola, which got its start in 1883, has successfully kept its brand relevant
for over 100 years. Revenues in 2003 topped $21 billion.
Coke's first president, Asa Candler, instituted many of the marketing tactics that are
entrenched principles now. To gain new customers, he printed coupons offering free
first tastes of the Coca-Cola drink. To build brand recognition, he gave clocks,
calendars, and weighing scales with the Coca-Cola logo to pharmacists who sold the
drink. He hired the company's first celebrity, music hall performer Hilda Clark, in the
1890s.
During the heyday of mass-market TV advertising, Coke was the master of the 30second TV spot. Its legendary "I'd like to buy the world a Coke" and "Mean Joe
Greene" ads were rated as two of the best ads ever by Advertising Age.
Coca-Cola also expanded overseas. During World War II, when the army shipped
Cokes to soldiers in Europe and Asia, Coke cemented its image as the "All-American
beverage." But over time, Coke realized it would need a more local feel in each
country. So, although it uses its signature red-and-white wave and lettering worldwide,
the company uses different ad agencies in different countries in order to make the
brand feel local. For example, the local versions of the "Mean Joe Greene" ad used
sports figures famous in those regions, such as soccer stars. Similarly, ads for CocaCola in Spain show it as a mixer with wine, reflecting how consumers use the product
in that country.
Coke also sells a wide range of different-flavored sodas in different countries. Visitors
to the company's museum in Atlanta can try these beverages everything from cool
watermelon (China), to an intensely bitter herbal soda (Italy), to a zingy ginger soda
(South Africa). In 2004, Coke launched a beer-flavored carbonated beverage in Japan.
Coca-Cola now gets two-thirds of its revenues from outside the United States. It's
easier to name the countries where Coke is not: Myanmar, Cuba, and Syria.
Everywhere elseincluding such tricky markets as Pakistan, Cambodia, Liberia,

Zimbabwe, and ColombiaCoke is a beloved consumer staple. In fact, the brand is so

strong and so entrenched that even the anti-American sentiments of 9/11 and after
have not hurt sales. Coca-Cola's brand valuation actually increased from $68.95
billion in August 2001 to $70.45 billion in August 2003. (By comparison, rival PepsiCola's brand value is a mere $11.78 billion.) Coca-Cola remains the top global brand,
achieving the top ranking in BusinessWeek Global Brand Scorecard once again in
2003.
Despite its powerhouse status, Coke must continue to evolve its marketing. For
example, the effectiveness of TV ads is declining due to media fragmentation and use
of devices like TiVO that let viewers zap commercials. Ads that reached 70 percent of
Americans during prime time in the 1960s

only reached 15 percent in 2004. So Coke is diverting money previously spent on TV

toward more experiential activities. For example, it's testing Coke Red Lounge
gathering areas for teens in malls. The lounges offer exclusive music videos and video
games and sell Coke drinks from a see-through Coke machine. In Britain, Coke's
mycokemusic.com Web site lets surfers legally download over 250,000 songs.
Chris Lowe, a Coke marketing executive, explained how the company stays on top:
"You can never betray the core values of the brand, but you can work to make those
values fresh and relevant. If you can't speak to people in these times, then you become
an old icon." Lowe described the iterative steps of generating a fresh ad campaign:
"There's the communication strategy that you want to put across. You test it with
consumers for validity and resonance. Then you take that core meaning and make it
come alive with advertising. Then you take it back to consumers to test it again."
The results of Coke's latest marketing shift aren't known yet, but in 2003 its then
Chairman, Douglas Daft, told investors that Coca-Cola Company has "arguably the
strongest and most pervasive marketing and distribution system in the world." And
with Coke being the first soda drunk in outer space, even the sky may not be the limit.
Discussion Questions
1. What have been the key success factors for Coca-Cola?
2. Where is Coca-Cola vulnerable? What should they watch out for?
3. What recommendations would you make to their senior marketing executives
going forward? What should they be sure to do with their marketing?

Case-3 (Group 2)
"We have a tremendously clear business model," says Michael Dell. "There's no
confusion about what the value proposition is, what the company offers, and why it's
great for customers." Dell is now the number-one computer systems company. Dell is
extremely responsive. Buyers go on Dell's Web site and design their own computers.
They give their payment authorization, which means that Dell receives the money in
advance and can use the funds to pay for the supplies needed to build the computer.
Because its computers are built-to-order, Dell carries an industry-leading four days of
inventory. It takes delivery of components just minutes before they are needed. At its
Austin, Texas, factories, a Dell System can in some cases be built, have the software
installed, be tested, and be packed in eight hours. Dell's costs are lower, allowing it to
price its computers lower than competitors' prices if it wishes. Yet speed is only one
part of the Dell equation. Service is the other. In fact, it was through veering away
from its successful business model that Dell discovered the importance of customer
service. In 1993, the company began trying to sell to retailers, mainly because
everyone else was. Customers were disgruntled because of poor retail service. Dell
ultimately abandoned the retail channel.
Most important, Michael Dell decided that "there would be more things we'd have to
do besides build a PC." He knew his company had two kinds of customers, corporate
and consumer. Whereas the consumer would buy mainly because of price, the
corporate buyer needed a carefully developed relationship. Like most successful
companies, Dell put the most resources into building relationships with its most
profitable customers.
Corporate customers make up about 80 percent of Dell's business, and the company
manages its corporate accounts with a top-notch sales team. Dell also installs custom
software and keeps track of business customers' inventory for them. Through the use
of Premier Dell.com, customized customer Web pages at the Dell site, the company
has created a 24-hour order-entry system. Big customers can click on the site to see all
kinds of information about their preferences and needs. The site can be accessed
worldwide by any company subsidiary; and employees, not just purchasing agents,
can use the Premier Dell.com to purchase computers according to an automated
policy. "It's the ultimate network," Michael Dell says, "and a fabulous way for us to
interact with our customers."
The normal practice of companies is to "build-to-stock." This is a guessing game that
companies often lose by building too much or too little. In the auto industry, cars will
sit unsold in dealers' lots for 60 days, tying up working capital. Why have auto and
other companies not moved from the inefficient "build-to-stock" model of production
to Dell's "build-to-order" model? Auto manufacturers have invited Michael Dell to
speak to them on several occasions. The consensus seems to be that Dell works with
50 main suppliers to put together a $1,000 PC, but a car manufacturer may have to
work with 900 suppliers to put together a $20,000 car. In addition to the technical
challenge, the auto industry faces dealer and legislative hurdles.

Discussion Questions
1. What have been the key success factors for Dell?
2. Where is Dell vulnerable? What should it watch out for?
3. What recommendations would you make to senior marketing executives going
forward? What should they be sure to do with its marketing?

Class-4 (Group-3)
Nike hit the ground running in 1962. Originally known as Blue Ribbon Sports, the
company focused on providing high-quality running shoes designed especially for
athletes by athletes. Founder Philip Knight believed that high-tech shoes for runners
could be manufactured at competitive prices if imported from abroad. The company's
commitment to designing innovative footwear for serious athletes helped it build a
cult following among American consumers. By 1980, Nike had become the numberone athletic shoe company in the United States.
From the start, Nike's marketing campaigns featured winning athletes as
spokespeople. The company signed on its first spokesperson, runner Steve
Prefontaine, in 1973. Prefontaine's irreverent attitude matched Nike's spirit. Marketing
campaigns featuring winning athletes made sense. Nike saw a "pyramid of
influence"it saw that product and brand choices are influenced by the preferences
and behavior of a small percentage of top athletes. Using professional athletes in its
advertising campaigns was both efficient and effective for Nike.
In 1985, Nike signed up then-rookie guard Michael Jordan as a spokesperson. Jordan
was still an up-and-comer, but he personified superior performance. Nike's bet paid
off: The Air Jordan line of basketball shoes flew off the shelves, with revenues of over
$100 million in the first year alone. Jordan also helped build the psychological image
of the Nike brand. Phil Knight said: "Sports are at the heart of American culture, so a
lot of emotion already exists around it. Emotions are always hard to explain, but
there's something inspirational about watching athletes push the limits of performance.
You can't explain much in 60 seconds, but when you show Michael Jordan, you don't
have to."
In 1988, Nike aired its first ads in the "Just Do It" ad campaign. The $20 million
month-long blitzsubtly encouraging Americans to participate more actively in
sportsfeatured 12 TV spots in all. The campaign challenged a generation of athletic
enthusiasts to chase their goals; it was a natural manifestation of Nike's attitude of
self-empowerment through sports. The campaign featured celebrities and
noncelebrities. One noncelebrity ad featured Walt Stack, an 80-year-old longdistance
runner, running across the Golden Gate bridge as part of his morning routine. The
"Just Do It" trailer appeared on the screen as the shirtless Stack ranon a chilly
morning. Talking to the camera as it zoomed in, and while still running, Stack
remarked, "People ask me how I keep my teeth from chattering when it's cold."
Pausing, Stack matter-of-factly replied, "I leave them in my locker."
As Nike began expanding overseas to Europe, it found that its American-style ads
were seen as too aggressive. The brand image was perceived as too fashion-oriented.
Nike realized that it had to "authenticate" its brand in Europe the way it had in
America. That meant building credibility and relevance in European sports, especially
soccer. Nike became actively involved as a sponsor of soccer youth leagues, local

clubs, and national teams. Authenticity required that consumers see the product being
used by athletes, especially by athletes who win. The big break came in 1994, when
the Brazilian team (the only national team for which Nike had any real sponsorships)
won the World Cup. The victory led Nike to sign other winning teams, and by 2003
overseas revenues surpassed U.S. revenues for the first time. Nike also topped $10
billion in sales for the first time in that year as well.
Today, Nike dominates the athletic footwear market. Nine of the 10 top-selling
basketball shoes, for example, are Nikes. Nike introduces hundreds of shoes each year
for 30 sportsaveraging one new shoe style every day of the year. Swooshes abound
on everything from wristwatches to golf clubs to swimming caps.
Discussion Questions
1. What have been the key success factors for Nike?
2. Where is Nike vulnerable? What should it watch out for?
3. What recommendations would you make to senior marketing executives going
forward? What should they be sure to do with its marketing?

Case 4 (Group 4)
Sony started as a radio repair shop, founded by MasuruIkura and Akio Morita after
World War II. The company began its long history of producing compact consumer
electronics in 1957, when it introduced the world's first pocket-sized all-transistor
radio. The company's name, Sony, was taken from sonus, the Latin word for "sound."
Sony went on to invent a series of transistor-based TVs and increasingly smaller
audiocassette recorders. In 1979, the Sony Walkman introduced the world to a new,
portable way of listening to music. Sony became a world leader in consumer
electronics and was the first Japanese company to have its shares traded on the New
York Stock Exchange.
In the late 1980s, Sony began expanding into media, purchasing a U.S. record
company (CBS Records for $22 billion in 1988) and a major Hollywood studio
(Columbia Pictures for $4.9 billion in 1989). The purchases made Sony a major force
in the entertainment industry.
The importance of marketing at Sony started with Akio Morita, who said that for a
company to be successful, it must have three kinds of creativity: creativity to make
inventions, creativity in product planning and production, and creativity in marketing.
Creativity in marketing at Sony means not just clever ads, but deep insight into its
customers. For example, Sony knows its PlayStation customers like to find clues and
to decode things. So Sony's ads for PlayStation 2, like "Signs," feature a young man
walking the streets of a city where he encounters various signs foreshadowing the
events. Mannequins appear in a store window, arms outstretched, and point
enigmatically to something that's about to happen. "The lead character is almost in the
midst of his own role-playing game. He needs to follow clues to save the heroine,"
said Andrew House, Sony's executive vice president of marketing. In the ads, "we
were essentially trying to tap into a range of emotions that we think we deliver in the
gamesintrigue, foreboding, excitement, panic, relief and achievement at the end."
Sony's marketing also includes careful measurement of each campaign's effectiveness.
For example, Sony runs 30-second commercials for its PlayStation as part of the
previews in more than 1,800 theaters and on 8,000 movie screens. The ads appear
before such films as "The Cat in the Hat." Sony Computer Entertainment America has
been running movie ads for six years. "Cinema advertising has been very effective for
us," said Ami Blaire, director of product marketing. "The reason why we have
committed to cinema every year

is the tremendous unaided recall shown by our own research and Communicuscommissioned ad tracking."
Another example of measurement is Sony's GenY youth marketing efforts. "The
online program promoting the NetMD, ATRAC CD Walkman and Cybershot U30 ran
July 1 through September 30 2003, and we found that more than 70 percent of the
clickthroughs were spurred by rich media ads via Eyeblaster, versus static banners,"
said Serge Del Grosso, Director of Media and Internet Strategy, Sony Electronics.
In fact, Sony has even developed a direct-marketing solution which it sells to other
companies who want to measure marketing effectiveness. The product, called
eBridgefJM], allows marketers to use video, measure the effectiveness of the
campaign, and gain insight into the target audience, all in one package.
Sony expects that the next big breakthrough will not come from a single new
electronic device. Rather, Sony president Kunitake Ando says that the future lies in
making a whole range of devices more useful by linking them in a networked homeentertainment system. The company believes that its clout in consumer electronics,
combined with its media content, will allow it to steer that convergence in a way that
suits it. Whether the future of convergence resides in TVs or PCs or devices, $62billion Sony makes every one of themwith a strong brand name that gives them an
extra push off retail shelves around the world.
Discussion Questions
1. What have been the key success factors for Sony?
2. Where is Sony vulnerable? What should it watch out for?
3. What recommendations would you make to senior marketing executives going
forward? What should they be sure to do with its marketing.